13th November 2006

Kopin Beats Guidance & Ramps Capacity in China

Kopin Corporation announced preliminary* financial results for the third quarter ended September 30, 2006.

Total revenue of $15.6 m, slightly higher than the revised guidance provided by the Company. Kopin reported total revenue of $25.4 m in the third quarter of 2005 and $18.9 m in the second quarter of 2006. III-V revenue of $10.0 m versus $10.8 m in the third quarter of 2005 and $12.1 m in the second quarter of 2006.

III-V revenue for the third quarter of 2006 declined approximately $0.8 m on a year-over-year basis and was down approximately $2.1 m sequentially, largely as a result of a customer’s short-term inventory correction. “Discussions with our customers indicate that 2007 will be an exceptionally strong year for the handset market, not just in terms of the number of units sold but also the content per phone,” Dr. Fan said. “We also expect momentum in our HBT business to be driven by growth in WiFi and WiMAX networking equipment.

“Trends in the wireless sector continue to be favorable, and we have been working hard to increase capacity,” Dr. Fan continued. “KTC, our OEM HBT manufacturing facility in Taiwan, is now qualified for production of certain products for our largest customer. The ramp of KTC and the addition of three new large HBT production machines at our wafer fabrication facility in Massachusetts will allow us to increase our III-V capacity by 50% in the next 12 months.”

* The Company’s results are preliminary pending the completion of a previously announced independent review of past stock option grant practices. The financial results reported today do not take into account adjustments that may be required in connection with the completion of this review, and should be considered preliminary until Kopin files its Form 10-Q for the third quarter ended September 30, 2006.

Web: www.kopin.com